Inspiring people and business
to new heights

Ten reasons to benchmark your business

At Jones Peters we can provide businesses with assistance and advice on a wide range of business issues. Here are ten reasons to benchmark your business...

More and more businesses are discovering the benefits of benchmarking and of developing a plan of best practice. Is it something that your business could consider?

What is benchmarking?

In a nutshell, benchmarking involves measuring the performance of one's business against that of others in similar markets. It has been described as "the practice of being humble enough to admit that someone else is better at something, and wise enough to try and learn how to match and even surpass them at it."

A good benchmarking review will allow you to determine how well each aspect of your business is faring, discover areas where you need to improve, and develop a plan for achieving those improvements. Before you can decide where you are going, you need to know where you are now - and benchmarking can help you do this.

The advantages

The Government-funded Small Business Service cites ten key reasons for implementing a benchmarking process for small businesses:

Improving productivity: businesses following action plans can expect productivity gains of up to 40% with a 10% increase relatively easy to achieve

Beating the competition: learning about adaptability and change is a benchmarking essential

Addressing growth issues: learn how to develop the right products and services at the correct pace

Customised to fit all: businesses of all sizes can benefit from the generic principles of benchmarking

An holistic approach: it is both qualitative and quantitative, ensuring more accuracy in developing a whole picture of your business.

Opens minds to new opportunities: whilst the results can make uncomfortable reading, the process usually raises new challenges for businesses

High quality of data: it allows direct statistical comparisons to be made with competitors

Helps businesses attract funding: in some areas of the UK, it has been used as part of the bidding process for grant aid

Leads directly to an action plan: Rather than simply highlight problem areas, it undertakes a strong review of turnover and profitability

Maintain client relationships: by being an ongoing process, benchmarking keeps clients in contact with advisers over the longer term.

If you would like professional assistance from experienced accountants and business advisers, contact Jones Peters.

Nexia International Limited does not deliver services in its own name or otherwise. Nexia International Limited and the member firms of the Nexia International network (including those members which trade under a name which includes the word NEXIA) are not part of a worldwide partnership. Nexia International does not accept any responsibility for the commission of any act, or omission to act by, or the liabilities of, any of its members. Each member firm within Nexia International is a separate legal entity.